Why Social Security's Financial Woes Should Worry You -- Even if You're Nowhere Near Retirement
You may have heard that Social Security is running out of money and won't be around in the near future. The good news is that that's not true.
Social Security may be looking at a financial shortfall, but it's not at risk of disappearing completely. It is, however, at risk of benefit cuts.
In the coming years, Social Security expects to owe more in benefits than it collects in revenue. The reason is that the program's primary revenue source is payroll taxes. But as baby boomers rapidly leave the workforce and start filing for benefits, Social Security will experience a cash crunch. And while it can tap its trust funds for a while to keep up with scheduled benefits, once those cash reserves run dry, benefit cuts will be on the table.
Source Fool.com
